Historic Record in Copper Prices Amid Customs Duty Expectations
Copper reached an all-time high of 14,533 dollars per ton on the London Metal Exchange due to expectations of customs duties on refined copper imports.
Expectations that US President Donald Trump will expand customs duties on refined copper imports caused prices on the London Metal Exchange to hit a historic record, rising to 14,533 dollars per ton.
Record Increase in Markets
Trading on the London Metal Exchange, copper rose by up to 0.8 percent to 14,533 dollars per ton, surpassing the previous record level registered in January. With this increase, copper prices recorded a 17 percent gain over the past year.
Customs Duty Expectations
Market expectations that US President Donald Trump will expand customs duties on refined copper imports continue to be decisive on prices. Potential tariffs are being priced in approximately two months after the advisory report prepared by the US Department of Commerce was submitted to the White House.
Supply Balance and Inventory Status
While global copper inventories generally remain at high levels, it was noted that the amount of metal within the global network of the London Metal Exchange has decreased. The concentration of the majority of existing inventories in the US has noticeably reduced short-term available supply.
Pressure on Investors
The concentration of inventories in the US and the reduction in short-term supply increased the pressure on investors holding short positions. In an environment where global demand follows a weak course, the supply squeeze experienced played a decisive role in prices reaching an all-time high.